Can a company director use dividends to qualify for a mortgage?

Yes — many lenders accept salary + dividends when assessing affordability. Some specialist lenders even use net profits or retained profits.

What documents do I need as self-employed or director?

You’ll need the last 1–2 years’ SA302s or accounts, business and personal bank statements, and a clear profit & loss record. Signed-off accounts help.

What if my business is less than 12 months old?

Some lenders will reject your application, but there are specialist lenders who may accept new businesses with just one year’s accounts. A broker like us can help find them.

How does Model Financial Solutions help?

We match your income structure to suitable lenders, handle the paperwork, negotiate with lenders, monitor rates, and guide you through the mortgage process.

Can a Limited Company Director Use Dividends for a Mortgage?

emily5888
Jul 20
2 min read

Updated: Oct 3

If you run your own business, getting a mortgage can feel more complex, but it doesn’t have to be. Whether you’re a sole trader, contractor or limited company director, specialist lenders and brokers can help.

What Do Lenders Look At?

Last 1–2 years of accounts or SA302s
Dividend and salary income (directors)
Share of Net profit (directors)
Net profit (sole traders)
Business bank statements

Common Challenges

Irregular income: Many self-employed individuals don’t have a consistent monthly salary, making affordability calculations more difficult.
Multiple income streams: Juggling income from different contracts or sources can confuse mainstream lenders.
Recently incorporated businesses: If your business is less than 12 months old, some high street lenders will decline your mortgage. However there are lenders available that may taken 1 year's accounts.
Tax efficiency vs borrowing power: If you retain profits in the business for tax reasons, your official income may appear lower than it actually is. However some lenders will take your share of net profit which may boost your affordability without the need to take funds out of your business.

How to Boost Your Approval Chances

Keep business and personal finances separate: Mixing the two can delay applications.
Make sure your accounts are professionally prepared: Lenders prefer signed-off accounts from a qualified accountant.
Avoid large unexplained account fluctuations: Regular income patterns are more favourable than occasional spikes.
Be proactive with your paperwork: Have SA302s, tax year overviews, company accounts, and bank statements ready.
Work with a broker who specialises in self-employed cases: They know which lenders consider retained profits, day rates, or unusual income.

Model Financial Solution's Tip

We work with specialist lenders who understand retained profits, director loan accounts, and day-rate contractors. We'll position your case clearly and help make your income work harder for you.

Want a mortgage that reflects your real income? Speak to an adviser at www.modelfs.co.uk today.

Risk warnings Your home may be repossessed if you do not keep up repayments on your mortgage. You may have an early repayment charge to your existing lender if you remortgage.